The federal government is offering $500 million in loan guarantees to Canada’s softwood lumber industry and placing limits on imported foreign steel as the two sectors reel from U.S. President Donald Trump’s tariffs, Prime Minister Mark Carney said Wednesday.
Ottawa is cutting steel import quotas for countries that do not have a free trade agreement with Canada from 50 per cent to 20 per cent of last year’s levels.
And countries outside the United States and Mexico that do have trade pacts with Canada will also see their quotas dropped from 100 per cent to 75 per cent of last year’s levels.
“This will open up more than $850 million in new domestic demand for Canadian steel,” Carney said.
Any steel imported above those thresholds will be hit with a surtax of 50 per cent.
Story continues below advertisement
1:47
Uncertainty in manufacturing sector amid tariff threats
Canada will also impose “a global 25 per cent tariff on targeted imported steel derivative products, such as wind towers, prefabricated buildings, fasteners and wires to grow demand for Canadian made steel.”
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.In July, Carney reduced the quota for imports from countries without free trade agreements to 50 per cent of 2024 levels.
Ottawa is also cutting freight rates for transporting Canadian steel across provinces by 50 per cent.
4:37
B.C. prepares to hold emergency softwood summit
“We’ll do that through funding directly Canadian National and Canadian Pacific Kansas City Railways,” Carney said.
Story continues below advertisementThe loan guarantee for softwood lumber will “ensure that companies have the financing and the credit support that they need to maintain and restructure their operations during this period of transformation,” Carney said.
The prime minister also announced a new “Canadian Forest Sector Transformation Task Force” that will seek recommendations from provinces, territories and the lumber industry on “how to seize new opportunities in softwood lumber and create new growth in the sector.”
Trending Now-
![]()
Canadian pistachio recall impacts 86 products in just 2 weeks
-
![]()
At least 36 killed in Hong Kong high-rise buildings fire, 279 still missing
Canadian pistachio recall impacts 86 products in just 2 weeks
At least 36 killed in Hong Kong high-rise buildings fire, 279 still missing
6:31
Carney to announce new supports for lumber, steel industries
When asked if Canada’s new duties could hamper the chances of a free trade agreement with the U.S., Carney said the U.S. and Mexico are “not included” in the list of trading partners that would be affected.
He added that Canada’s curbs on steel derivative imports are not as broad as those imposed by the U.S.
Story continues below advertisementThe moves come as the steel industry continues to be hammered after Trump levied 50 per cent tariffs on Canadian steel in June.
Softwood lumber, which has long been subjected to U.S. tariffs, is currently taxed at 45 per cent after the Trump administration’s hike last month.
Trump cut off trade talks with Canada last month after the Ontario government ran television ads in U.S. markets using 1987 remarks from former U.S. president Ronald Reagan to highlight the downside of tariffs.
Carney confirmed that he is travelling to the United States next week and will meet with Trump but did not say whether he intends to restart the stalled trade talks.
“We are ready to reengage on those talks when the United States wants to reengage,” he said.
–with files from Mackenzie Gray and The Canadian Press
More on Canada More videos- Oldest brewing school in the U.S. relocating operations from Chicago to Montreal
- Businesses seeing drop in US customers during holiday season amid tariffs
- Canadians want ‘energy security,’ Champagne says amidst pipeline talk
- Quebec to extend religious symbols ban, outlaw university prayer rooms in new bill
-
![]()
Carney to announce new supports for lumber, steel industries
-
![]()
Calgary’s $129M in federal housing funds ‘paused’ pending citywide rezoning status
-
![]()
Carney says B.C. and First Nations ‘have to agree’ on Alberta’s pipeline plan
-
![]()
14 Alberta government MLAs are facing recall efforts: What’s going on?
Carney to announce new supports for lumber, steel industries
Calgary’s $129M in federal housing funds ‘paused’ pending citywide rezoning status
Carney says B.C. and First Nations ‘have to agree’ on Alberta’s pipeline plan
14 Alberta government MLAs are facing recall efforts: What’s going on?
